Shares of Angel Oak Mortgage REIT Inc. (NYSE:AOMR) have garnered an average recommendation of “Moderate Buy” from seven ratings firms, according to MarketBeat.com. Analysts’ assessments reveal a diverse outlook, with three firms suggesting a hold and four endorsing a buy recommendation. The consensus target price stands at $11.45, reflecting a cautious optimism about the company’s future performance.
Recent reports from equity research analysts indicate notable changes in the stock’s ratings. Zacks Research upgraded Angel Oak from a “strong sell” to a “hold” rating on November 4, 2023. Conversely, Wall Street Zen revised its stance, lowering the stock from a “hold” to a “sell” rating just over a week later, on November 15, 2023. Additionally, UBS Group adjusted their target price from $10.00 to $9.75, while maintaining a “neutral” outlook in a report dated November 18, 2023. Weiss Ratings reaffirmed a “hold (c-)” rating on December 15, 2023.
Stock Performance and Financial Overview
As of Thursday, November 26, 2023, Angel Oak’s stock opened at $8.74. The company exhibits a strong financial position with a current ratio of 6.83 and a debt-to-equity ratio of 6.87. Its 1-year trading range has been between a low of $7.36 and a high of $10.88. The stock’s fifty-day simple moving average is $8.91, while the 200-day average stands at $9.28. With a market capitalization of $217.71 million and a price-to-earnings (PE) ratio of 12.31, Angel Oak’s financial metrics suggest a stable investment.
The company’s performance in its latest quarterly earnings report, released on November 6, 2023, revealed earnings per share (EPS) of $0.02, falling short of analysts’ expectations of $0.28 by $0.26. Despite this earnings miss, Angel Oak reported a notable revenue of $28.02 million, significantly exceeding the forecasted $10.68 million. Analysts anticipate that the company will achieve an EPS of $0.03 for the current fiscal year.
Dividend Announcement
On a positive note for investors, Angel Oak recently declared a quarterly dividend of $0.32. This dividend was paid on November 26, 2023, to shareholders on record as of November 18, 2023. The annualized dividend totals $1.28, resulting in a yield of 14.6%. The company’s current payout ratio stands at 180.28%, indicating a commitment to returning value to shareholders despite the recent earnings challenges.
The Angel Oak Mortgage REIT operates as a real estate investment trust (REIT), focusing on a diversified portfolio of residential mortgage assets. The firm invests mainly in non-agency residential mortgage-backed securities (RMBS), whole loans, and credit risk transfer securities from government-sponsored enterprises. By leveraging structured credit instruments, Angel Oak aims to deliver attractive risk-adjusted returns through net interest income and potential capital appreciation, adapting its strategies to changing market conditions.
Investors and analysts alike will be monitoring Angel Oak’s performance closely as the company navigates the challenges and opportunities within the mortgage and real estate sectors.
